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Groupe Renault sales continue to thaw for the fourth year in a row

In 2017, the Renault Group was at the top of the global podium with over 10.6 million vehicles sold worldwide. In 2023, the contrast is stark. For the fourth year in a row, sales are in the red. And 2022 will see a further significant drop of 5.9% from the previous year, with just over two million vehicles sold.

If it is true that the group, like others, continues to suffer from a shortage of parts or new car supplies, Renault is also paying a heavy price for its exit from Russia with the war in Ukraine. A stop that deprives the group of 482,000 sales, or 18% of deliveries.

If sales of Dacia (+6.8% globally) and Alpine are well oriented, the drop should be attributed to the diamond brand. The low-cost brand’s sales were driven by its small Sandero and its Duster SUV, respectively No. 1 and No. 2 in European retail sales, as well as its small electric Spring.

Conversely, sales of the Renault brand fell by 14.6% in 2022 and it remains in second place in the French market behind Peugeot. In total, the brand sold 1,466,729 vehicles against 1,751,000 last year. The group’s sales are falling, especially in Europe. To justify this decline in volumes, management says it has chosen to prioritize sales that create the most value, i.e. electric and hybrid vehicles.

Outside of Europe, sales are stable compared to 2021. The share of sales outside Europe reached 43.2% of the brand’s total sales. In Latin America, Renault sales even increased by 8% year-on-year to 283,116 sales, thanks in part to a small Kwid. Turkey became its fourth market with nearly 100,000 vehicles (+22.6% yoy) and a growing market share.

To the end of the tunnel

However, Renault’s management wanted to reassure for 2023, assessing that its order books are well filled. The brand is also counting on its Arkana SUV and the new Mégane to revitalize its operations. “In 2023, the growth of the Renault brand will be driven by our E-TECH range” (hybrid and electric) as well as “four launches,” the brand explains. However, the bet is risky with strong competition in this market and the announced entry of several Chinese manufacturers with more than attractive prices.

At the same time, Renault seems to be finally coming out of the hectic period after Carlos Ghosn. Despite falling sales, the group should regain profitability. We’ll have to wait until February to see the financial results, but the specialists expect an operating margin of around 5.8%.

Another subject of satisfaction. All the latest obstacles to the new Renault Nissan alliance seem to have finally been removed. During a Nissan board meeting on Monday, the manufacturer gave the green light to a major overhaul of the Renault-Nissan alliance. The operational council of the alliance is scheduled for January 26, and the agreements should be signed “next week.” As part of this overhaul, Renault is to reduce its stake in Nissan to 15% and the Japanese manufacturer will receive up to 15% of the capital of Ampere, Renault’s future electric pole. Thus, for the first time since their marriage, both groups will be in an equal position, each will own 15% of the capital of the other and have the same number of voting rights.

This new cooperation should allow to be competitive, which should be a response to the accelerated movement towards electrification. It remains to be seen which projects will no doubt move forward soon.

Source: Le Parisien

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